Canada’s reputation as a significant holder of lithium reserves, while not having any significant lithium production, looks on target to change with successful developments at the North American Lithium (NAL) operation in Quebec.
The Sayona Mining Limited (ASX: SYA) operated project achieved a major milestone in mid-March with the successful production of the first saleable spodumene (lithium) concentrate at its flagship North American Lithium (NAL) operation.
Commissioning activities continue to progress, with approximately 1,200t of lithium concentrate produced, including SC6 (six per cent lithium grade). The company declared that this demonstrates Sayona’s ability to produce a commercial concentrate, following the recent successful production of the first lithium concentrate.
NAL’s restart continues to proceed on schedule and within budget, with the first lithium shipment expected to occur in July 2023. Sayona is targeting total production between 85Kt and 115Kt during the first half of fiscal 2024.
Engineering is now progressing on the next sub‐project, the Crushed Ore Storage Dome, with close expediting of engineering deliverables implemented.
Sayona’s Managing Director, Brett Lynch said the production of NAL’s first saleable concentrate was a major milestone for the operation’s restart, reflecting the improvements made to enhance production.
North American Lithium suspended production in 2019, sought bankruptcy protection, and was acquired by Sayona Québec in 2021, a joint venture between Sayona Mining and Piedmont Lithium.
“Congratulations to the whole team at NAL for delivering yet another milestone on time and within budget. Having witnessed first‐hand the operation’s restart I can only express admiration for this achievement, which demonstrates we have the experience and expertise to run a successful operation,” Mr Lynch said.
“As the electrification revolution continues, Québec is in pole position thanks to its sustainable hydropower, leading infrastructure and proximity to market. For Sayona, the opportunity is only getting bigger, and we are proud to play our part as North America’s emerging leading hard rock lithium producer.”
Mr Lynch said the NAL operation will represent the most significant source of hard rock lithium production in North America, boosting Québec’s plans for the development of a local battery sector, from mining to manufacturing.
Meanwhile, Sayona has announced plans for further drilling both at NAL and Jourdan Resources’ adjacent Vallée Lithium Project (earn‐in claims). More than 50Km of drilling are planned, likely one of Québec’s largest drilling programmes this year.
The planned 2023 drilling programme will be undertaken at NAL and Jourdan’s adjacent Vallée Lithium Project, comprising the 28 claims subject to the earn‐in and joint venture agreement entered into between NAL and Jourdan in November 2022.
More than 24,000m of that drilling is planned at the Vallée project (earn‐in claims), with the programme expected to commence in May 2023.
“This is an historic moment which truly showcases the strong partnership between Jourdan, NAL and Sayona. With Jourdan having over 13Kha of land surrounding Sayona’s NAL project, the opportunity to partner with NAL and Sayona to accelerate Jourdan towards production is clear,” Jourdan CEO and president, Rene Bharti, said.
“Given that the Sayona NAL concentrator has commenced operations, Jourdan is in a very rare position to benefit from having access to what we expect will become Canada’s leading lithium producing mine and concentrator. We are truly proud and honoured at what we see as significant upside potential for both companies, in such a strong lithium environment.”
The Vallée project comprises 48 claims covering around 1,997ha, closely neighbouring the NAL mine tenure, with 20 leases located within 500m of the mine boundary. In comparison, NAL’s leases cover some 582ha.
In November 2022, Sayona announced a strategic acquisition and earn‐in by NAL at the project, with NAL acquiring 20 claims outright and with the right to earn up to a 51% stake in the remaining 28 claims.
Sayona’s plans have been supported by a recent successful C$50M flow‐through‐shares raising.
Canadian Lithium
According to Natural Resources Canada (NRCAN), the nation has an estimated 3.2Mt of lithium resources (measured and indicated, inclusive of reserves). Lithium brines in Alberta and Saskatchewan could increase these resources as technology and processing are advanced to extract lithium compounds economically from oil and gas fields, including from existing infrastructure and industrial wastewaters.
Recent Canadian lithium history
In November 2022 the Canadian government announced a C$27M contribution to E3 Lithium Ltd through a Strategic Innovation Fund’s Net Zero Accelerator initiative.
This investment will support E3 Lithium’s C$87M project for the construction of a demonstration plant specializing in lithium production. This facility will be the first step toward a full-scale lithium production plant that will produce up to 20Kt of battery-grade lithium. This will enable the development of a sustainable, long-term source of lithium supply, which is critical to building electric vehicles and an anchor in the North American supply chain.
François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, said that by investing in Canadian lithium production, the government is not only ensuring Canada is ready for the increasing demand for domestically produced batteries but also continuing to support our critical minerals sector so that Canadians will have access to the resources needed to electrify our transportation ecosystem.
“This project offers a first-of-its-kind solution that will allow for the production of high-quality lithium in a more efficient manner and in greater quantity, and it will create and maintain 166 high-quality jobs for Canadians in Alberta. The project will also advance the forthcoming Canadian Critical Minerals Strategy by bringing value-added mineral processing capability to the Canadian ecosystem.
Potential Canadian developments
NRCAN has identified a number of past and present Canadian lithium developments. These projects range from early exploration to a pre-production stage.
After several years of exploration and construction, Nemaska Lithium produced its first spodumene concentrate at the Whabouchi Mine in Quebec in early 2017. The company suspended production in 2019, and the mine was put on care and maintenance. After seeking bankruptcy protection, Nemaska was acquired by the Pallinghurst Group in partnership with the Government of Quebec and emerged from creditor protection in 2020. The company plans to restart the mine and build a lithium hydroxide refinery in Bécancour, Quebec.
Current Facts
- Canada is a net importer of lithium and lithium products. Canada’s lithium oxide, hydroxide, and lithium carbonates imports totalled C$21.7M, a small increase from C$20.5M in 2020.
- Russia and China accounted for over 60% of the net imports of lithium oxide and hydroxide, whereas Chile accounted for over 65% of the net imports of lithium carbonates.
- Canada had limited production of lithium from 2014 to 2019 and none in 2020. Several companies are currently working to develop lithium projects from traditional hard rock mining to unconventional sources such as oilfield brines and industrial wastewaters, in Ontario, Quebec, Alberta, Manitoba and Saskatchewan. These projects range from early exploration to an advanced stage.
